Correlation Between Victory Integrity and Senmiao Technology
Can any of the company-specific risk be diversified away by investing in both Victory Integrity and Senmiao Technology at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Victory Integrity and Senmiao Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victory Integrity Smallmid Cap and Senmiao Technology, you can compare the effects of market volatilities on Victory Integrity and Senmiao Technology and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Victory Integrity with a short position of Senmiao Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory Integrity and Senmiao Technology.
Diversification Opportunities for Victory Integrity and Senmiao Technology
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Victory and Senmiao is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Victory Integrity Smallmid Cap and Senmiao Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senmiao Technology and Victory Integrity is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Victory Integrity Smallmid Cap are associated (or correlated) with Senmiao Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senmiao Technology has no effect on the direction of Victory Integrity i.e., Victory Integrity and Senmiao Technology go up and down completely randomly.
Pair Corralation between Victory Integrity and Senmiao Technology
Assuming the 90 days horizon Victory Integrity Smallmid Cap is expected to generate 0.2 times more return on investment than Senmiao Technology. However, Victory Integrity Smallmid Cap is 5.11 times less risky than Senmiao Technology. It trades about -0.06 of its potential returns per unit of risk. Senmiao Technology is currently generating about -0.09 per unit of risk. If you would invest 2,547 in Victory Integrity Smallmid Cap on September 12, 2024 and sell it today you would lose (28.00) from holding Victory Integrity Smallmid Cap or give up 1.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victory Integrity Smallmid Cap vs. Senmiao Technology
Performance |
| Timeline |
| Victory Integrity |
| Senmiao Technology |
Victory Integrity and Senmiao Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victory Integrity and Senmiao Technology
The main advantage of trading using opposite Victory Integrity and Senmiao Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Integrity position performs unexpectedly, Senmiao Technology can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Senmiao Technology will offset losses from the drop in Senmiao Technology's long position.| Victory Integrity vs. Victory Trivalent International | Victory Integrity vs. Victory Diversified Stock | Victory Integrity vs. Victory Sophus Emerging | Victory Integrity vs. Victory Diversified Stock |
| Senmiao Technology vs. Victory Integrity Smallmid Cap | Senmiao Technology vs. Hilton Worldwide Holdings | Senmiao Technology vs. NVIDIA | Senmiao Technology vs. JPMorgan Chase Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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